Tip culture is already out of control. This can only make it worse.
“the Senate passed the No Tax on Tips Act 100–0, which “creates a federal income tax deduction of up to $25,000 a year for certain types of cash tips for eligible employees,” per The Washington Post. (“Cash tips” include tips given not just in cash but also via credit and debit cards.) This applies to employees earning $160,000 or less annually.”
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“If you actually wanted to help the household budgets of working-class people, the best thing you could do is refrain from imposing 10 percent across-the-board tariffs (and more for goods imported from China). It’s not clear to me that no taxes on tips, though President Donald Trump touted it repeatedly from the campaign trail, will do all that much, or that there was a ton of accurate tip-reporting happening in the first place.”
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“creates an opportunity for people to try to categorize their normal income as tips, and how much they can now get away with remains to be seen.”
Man who worked with Trump in his first term explains that Trump is not qualified to be president. He isn’t interested in policy, he doesn’t read his briefings, he’s vulnerable to being manipulated by praise, and he’s not concerned about the world but just about himself.
“Unlike every other department and agency within the federal government, the CFPB is not funded via congressional appropriations. Instead, its funding flows directly from the Federal Reserve. Each year, the White House submits a budget to the Federal Reserve, and the central bank hands over the necessary amount—$729.4 million last year, in case you were wondering.
For a long time after the CFPB was created in 2010, there were serious questions about the constitutionality of that structure. That finally got resolved last year, when the Supreme Court ruled that Congress was within its powers to hand off the purse strings. So, funding the CFPB via the Federal Reserve is not unconstitutional—it’s just unorthodox and foolish.
Here’s where the hubris enters the story. When Warren and Obama created the CFPB, they designed that unorthodox funding structure specifically to prevent a future Republican-led Congress from trying to defund the bureau. Remember, this was in the age when Republicans were running around the country telling voters they intended to repeal Obamacare too. By isolating the CFPB from Congress’ budgetary powers, Warren was trying to make it invulnerable to attack.
Instead, she simply gave it a fatal flaw.
Earlier this week, the Trump administration submitted its CFPB funding request to the Federal Reserve. It asked for…$0.
“Pursuant to the Consumer Financial Protection Act, I have notified the Federal Reserve that CFPB will not be taking its next draw of unappropriated funding because it is not ‘reasonably necessary’ to carry out its duties,” wrote Russ Vought, director of the White House’s Office of Management and Budget (OMB), wrote on X on Saturday night. “The Bureau’s current balance of $711.6 million is in fact excessive in the current fiscal environment. This spigot, long contributing to CFPB’s unaccountability, is now being turned off.”
That appears to be the end of the CFPB, at least until a Democrat returns to the White House. Trump will need an act of Congress if he seriously wants to abolish the Department of Education, for example, and even minor spending cuts being made across the executive branch will eventually need congressional or legal consent to be permanent. But there should be no serious questions about whether the president can unilaterally defund the CFBP. Congress has no role to play in that fight.”
“Economist Peter C. Earle, the director of economics and economic freedom at the American Institute for Economic Research, tells Reason that referring to Trump’s proposal to acquire vast amounts of cryptocurrency as a “strategic reserve” is “misleading first and foremost because traditional strategic reserves…like the strategic petroleum reserve [and] China’s strategic pork reserve are basically…repositories where large amounts of commodities are held [that] serve economic and security functions.” No cryptocurrency serves a security function, and only two, bitcoin and cardano, could plausibly serve the economic role since their supply is algorithmically constrained, explains Earle. Instead, the federal government committing itself to purchasing cryptocurrency would put a “floor under crypto values” and would function as a “sort of soft subsidy.””
“the demise of public housing was not an inevitable outcome. As my colleague Rachel Cohen has pointed out, other countries have successfully pulled it off. Governments around the world have shown that they can operate mixed-income housing developments that have reliable maintenance and upkeep and that public housing doesn’t have to segregate poor people away from the middle class.
So why did public housing in the United States age so poorly?”
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“efforts to undermine public housing are about as old as the efforts to build it. From the outset, opposition was fierce. Many Americans didn’t like the idea of the government using their tax dollars to subsidize poor people’s housing, and real estate developers were concerned about having to compete with the government.
The Housing Act of 1949, which had a goal of providing “a decent home and a suitable living environment for every American family,” bolstered America’s public housing plans by heavily investing in the construction of new housing units. But by then, the federal government had already undermined its own stated plans by capping construction costs (which encouraged using cheap materials and discouraged modern appliances) and allowing racial segregation. Congress had also doomed public housing authorities’ ability to raise revenue through rents in 1936 when it passed the George-Healey Act, which established income limits for who can qualify for public housing — making mixed-income public housing models impossible for federally funded projects.
As housing projects started to draw more Black residents, white people who lived in public housing started leaving, especially after the Civil Rights Acts of the 1960s banned racial discrimination in housing. This was partly because the Federal Housing Authority pushed for more people to own homes and expanded its loans mostly to white people, helping white families move out of the projects. Black families didn’t receive the same opportunity.
“You saw a change in the racial composition, which simply added to the stigma and the pattern of administrative neglect that characterized many housing authorities,” the historian Ed Goetz told The Atlantic in 2015.
Starting with President Richard Nixon — who declared that the US government had turned into “the biggest slumlord in history” and suspended federal spending on subsidized housing — public housing started facing serious austerity measures and never recovered. Federal investments shifted away from building new public housing units and toward housing vouchers and public-private partnerships.
In the decades that followed, public housing started declining in quality, and Congress funded a program to demolish dilapidated public housing units and replace them with newly constructed or renovated mixed-income developments. But according to the National Low Income Housing Coalition, those demolitions were an “overcorrection”; public housing simply needed more funding and better management.”
“If minimum wage increases were a drug, governments would have to conduct trials and monitor adverse effects afterward. That’s what happened in Seattle when it raised the minimum wage in 2014. The city called for proposals to study the impact on actual workers earning below the minimum before the law. The Evans School of Public Policy and Governance at the University of Washington was the only volunteer. Its researchers found that the law didn’t cause an increase in layoffs among workers who had previously earned below minimum wage, but it did reduce their hours by an average of 7 percent. That was partly offset by a 3 percent increase in hourly pay for the hours they did work. On net, the law cost these workers an average of $888 per year.
That amount is significant in itself, but it’s important to consider that it accounts for only the short-term effects. As mentioned above, some layoffs and hour reductions will happen immediately, but others—such as more businesses closing and fewer opening, or automation and other changes reducing employment—can take years. Another point is that the workers who benefited from higher pay were the ones most likely to have risen out of the minimum wage ranks to the middle class even without a mandated increase, while the workers who lost much more than $888 per year are more likely to be the ones blocked forever from economic advancement. In fact, the paper found that the workers who benefitted net were the most experienced and highest paid among the group–earning more than the old minimum but less than the new–while the less-experienced workers earning the old minimum or close to it, lost considerably more than the average.
Seattle legislators must have been unhappy with those findings because they cut funding for the Evans School and reached out to the same group at U.C. Berkeley that did the California minimum wage study to do its own distorted analysis, which was rushed out a week before the Evans study was made public. Eventually, Seattle raised the minimum wage again.”
“The new orders prevent transgender people from openly serving in the military, greenlight the process of developing a missile defense shield to protect the U.S., and reinstate service members that voluntarily left or were forced out of the military over COVID-19 vaccine mandates.
Trump also penned an expected executive order that would “abolish” every diversity, equity and inclusion (DEI) office within the DOD and Department of Homeland Security, the latter of which houses the U.S. Coast Guard.”
“The new law will require the detention of undocumented immigrants accused of certain crimes such as theft. Federal immigration officials have warned it could impact 60,000 people.”
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“ICE warned Congress that the Laken Riley Act could require detention for 60,000 people, and that the agency would need billions of dollars and thousands more detention beds to comply with the law, Axios reported.”
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“The federal government has prioritized deporting immigrants with criminal records since the Obama administration”
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“Study after study has indicated that immigrants — those in the U.S. legally or undocumented — commit crimes at lower rates than U.S. citizens, Axios’ Russell Contreras reports.”